CFPB’s Consumer Advisory on Virtual Currency in 2015
Growth in the popularity and use of Bitcoin and other virtual currencies has sparked discussions about the risks and legal issues surrounding this emerging technology. In 2014 the Consumer Financial Protection Bureau (CFPB) issued a “Consumer Advisory” alerting consumers to risks related to crypto-currencies and established the capability to take consumer complaints relating to use of these products. The Treasury Department’s Financial Crimes Enforcement Network (FinCEN) also issued various bulletins and guidance relating to, among other things registration requirements for certain virtual currency providers. In addition, a number of state banking and finance departments have issued guidance or proposed regulations for the sale and use of virtual currencies. Our panel of key thought leaders and practitioners, assembled by The Knowledge Group, will provide a general introduction to Bitcoin and virtual currency, discuss the major risks facing consumers and regulators, and examine key state and federal regulatory developments affecting virtual currency companies.
Key topics include:
- Virtual Currency – An Overview
- The CFPB Consumer Advisory
- Associated Risks of Virtual Currency
- Virtual Currency and the Law (Federal and State Regulations)
- Mitigating Risks in Virtual Currency
Gerald Sachs, Of Counsel
Paul Hastings LLP
- The CFPB’s jurisdiction over digital or crypto currencies and its advisory;
- How to work with the CFPB (Enforcement and Market Research Groups);
- Various other federal regulators that have jurisdiction over digital currencies (FinCEN and IRS);
- State regulators that have issued guidance to regulate digital currencies (NY DFS, TX, KS . . . ) and how to work with these regulators.
Ryan J. Straus, Principal
Riddell Williams P.S
- Virtual Currency and Deposit-Taking
Andrew Beal, Attorney
Crowley Corporate Attorneys
- State Regulation - overview of state landscape and focus on protecting customer funds, guidance from key states, BitLicense proposal, CSBS model framework, recent criminal suits against unlicensed money transmitters
- Proliferation of digital tokens (non-currency) and crowd sales - overview of technological developments, self regulation and best practices being established, SEC/CFTC implications
- Federal Regulation - overview of federal landscape, focus on anti-money laundering, FinCEN guidance and opinions
Who Should Attend:
- Data Security Professionals
- Privacy Law Attorneys
- Securities Attorneys
- IT Lawyers
- IT Heads
- Chief Compliance Officers
- Risk Officers
- Privacy and Data Security Officers
- Private and Public Companies
- Other Related/Interested Professionals and Organizations
Gerald Sachs is of counsel in the Global Banking and Payment Systems practice at Paul Hastings and is based in the firm’s Washington, D.C. office. Prior to joining Paul Hastings, Mr. Sachs was Senior Counsel for Policy and Strategy of the Consumer Financial Protection Bureau’s (CFPB) Office of Enforcement. At the CFPB, he assisted the office with strategic planning, drafting internal policies and procedures, coordinating with state and federal regulators, conducting investigations, providing supervisory exam support, and working on intra-agency initiatives. In addition, he led two teams of attorneys that focused on auto finance, credit cards, mobile payments, emerging payments, prepaid cards, and digital currency.
Prior to working with the CFPB, Mr. Sachs served as an Assistant United States Attorney in the Northern District of Georgia where he prosecuted both civil and criminal cases relating to money laundering and asset forfeiture, economic crimes, computer crimes, narcotics trafficking, and the False Claims Act. Before joining the United States Attorney’s Office, Mr. Sachs worked as an attorney for the Federal Trade Commission’s Southeast Region Office in Atlanta, Georgia where he investigated and prosecuted consumer protection cases related to unfair and deceptive acts and practices.
Gerald Sachs is of counsel in the Global Banking and Payment Systems practice at Paul Hastings and is based in …
RYAN J. STRAUS is a Principal at Riddell Williams P.S. in Seattle. Ryan assists clients with payment matters, including electronic payments, mobile payments, prepaid cards, alternative currencies and federal and state licensing. As an attorney with a background in both technology and financial services, Ryan regularly speaks and writes about emerging payments and responsible innovation in consumer financial services and technology. Ryan graduated, magna cum laude, from Lewis & Clark Law School and is admitted to the Washington State Bar.
RYAN J. STRAUS is a Principal at Riddell Williams P.S. in Seattle. Ryan assists clients with payment matters, including electronic …
Andrew is an attorney at Crowley Corporate Attorneys in Los Angeles. In addition to providing general corporate counsel to emerging technology companies, Andrew advises virtual currency companies in the areas of federal and state regulation, Bank Secrecy Act compliance, and securities issues related to the sale and issuance of digital assets. He has represented virtual currency exchanges, large brokers, ATM operators, mining hardware companies and software developers. Andrew is frequent speaker on virtual currency-related topics and over the last year has educated members of the banking and compliance communities on Bitcoin and blockchain technology. Andrew is also a mentor at Plug N Play’s Bitcoin Accelerator Program in Silicon Valley.
Andrew is an attorney at Crowley Corporate Attorneys in Los Angeles. In addition to providing general corporate counsel to emerging …
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About Paul Hastings LLP
With a strong presence throughout Asia, Europe, Latin America, and the U.S., Paul Hastings has the global reach and extensive capabilities to provide personalized service wherever its clients need the firm. Paul Hastings offers a complete portfolio of services to address its clients’ complex, often mission-critical challenges – from structuring first-of-their-kind transactions to resolving complicated disputes to providing the savvy legal counsel that keeps business moving forward.
About Riddell Williams P.S
Exceptional legal representation requires a seamless combination of talent, experience and understanding of client objectives. For over a century, Riddell Williams has fused these key elements to confidently and diligently serve clients’ best interests. The integration of strategic thinking, expertise and service has enabled the attorneys at Riddell Williams to serve as indispensable advocate for businesses. Clear communication, accessibility and responsiveness are among Riddell Williams’ guiding principles, and the firm holds itself accountable for providing the personal service its clients deserve.
About Crowley Corporate Attorneys
Crowley Corporate Attorneys is a boutique transactional firm specializing in providing corporate counsel to emerging technology companies. Whether you are a startup looking for your first customer or a public company with hundreds of employees, we understand the unique challenges facing your business and are committed to providing the strategic advice and legal expertise you need to get you over the finish line.